Diversifying to reduce volatility is a good idea only if A) shareholders can diversify within their...
Diversifying to reduce volatility is a good idea only if
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Homework Answers
The correct answer is A)
An investor should be able to diversify his portfolio at a low cost. If the diversification comes at a significant transaction cost, then that cost would eat up the benefits of diversification.
So,
Diversifying to reduce volatility is a good idea only if
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Diversifying to reduce volatility is a good idea only if
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